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Re-examining Supplier-induced Demand in Health Care: Comparisons Among Patients Affiliated and Not Affiliated with Healthcare Professionals in China

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Listed:
  • Si, Yafei
  • Zhou, Zhongliang
  • Su, Min
  • Hu, Han
  • Yang, Zesen
  • Chen, Xi

Abstract

Doing "more" in healthcare can be a major threat to the delivery of high-quality health care. This study used coarsened exact matching to test the hypothesis of supplier-induced demand (SID) by comparing health care utilization and expenditures between patients affiliated with healthcare professionals and their counterpart patients not affiliated with healthcare professionals. Using the China Labor-force Dynamics Survey (CLDS) in 2014, we identified 806 patients affiliated with healthcare professionals and 22,788 patients not affiliated with healthcare professionals. The matched outpatient proportion of patients not affiliated with healthcare professionals was 0.6% higher (p=.754) than that of their counterparts, and the matched inpatient proportion was 1.1% lower (p =.167). Patients not affiliated with healthcare professionals paid significantly more (680 CNY or 111 USD, p

Suggested Citation

  • Si, Yafei & Zhou, Zhongliang & Su, Min & Hu, Han & Yang, Zesen & Chen, Xi, 2020. "Re-examining Supplier-induced Demand in Health Care: Comparisons Among Patients Affiliated and Not Affiliated with Healthcare Professionals in China," GLO Discussion Paper Series 688, Global Labor Organization (GLO).
  • Handle: RePEc:zbw:glodps:688
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    References listed on IDEAS

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    3. Dranove, David, 1988. "Demand Inducement and the Physician/Patient Relationship," Economic Inquiry, Western Economic Association International, vol. 26(2), pages 281-298, April.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Supplier-induced Demand; Health Care Utilization; Healthcare Professionals; China;
    All these keywords.

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General

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